YYYYieldShares High Income ETF
YYY Fund Description
The YieldShares High Income ETF tracks an index of US-listed closed-end funds, weighted by yield, discount to NAV, and trading volume. There are no restrictions on the assets or strategies of the underlying funds.
YYY Factset Analytics Insight
YYY provides investors with yet another way to maximize yield, owning a basket of closed-end-funds. YYY tracks an index of about 30 closed-end funds, selected and weighted based on three criteria: yield, discount to NAV, and trading volume. The concept hinges on the success of buying discounted closed end funds with big yields and enough liquidity to minimize trading costs within the basket. YYY can hold closed-end funds focused on any of the major asset classes, resetting the weight to a maximum of 4.25% each at rebalance. The fund competes directly with PCEF and a 2x version of its own index, CEFL. YYY’s fee includes the expense of its constituent funds, and it's surprisingly reasonable for CEFs. It's not a huge fund, but it's showing steady growth in AUM and closure risk is low. Trading volumes are decent, but the spreads can vary wildly. A footnote: YYY launched in June 2013 by grafting itself onto a moribund ETF—SNDS—that had a completely different strategy, so any performance history prior to that date is unrelated.
YYY CHARTS AND PERFORMANCE
YYY Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of YYY. YYY is rated a N/A out of 5.